Typically, these shares are issued to consultants who have provided a shell for a company to reverse-merger into...
What's interesting here is that there doesn't appear to be a previous shell company associated with OPBL. Looks like they did do an IPO, but on the OTC? Its unusual, but perhaps they were able to do it because of the expertise of the company's Chairman, Marc Nordlicht:
"Mark Nordlicht: Mr. Nordlicht is a founder of the Company and has served as our
Chairman of the Board of Directors since 2000. Mr. Nordlicht has also been the
Managing Partner of the General Partner of Platinum Partners Value Arbitrage
Fund, a market-neutral hedge fund, since January 2003. Mr. Nordlicht also served
as Managing Partner of West End Capital from 1998 through 2002. In his various
positions, Mr. Nordlicht is also the Chairman of the Board of Platinum Energy
Resources, Inc., a publicly-traded company, since April 2005. Mr. Nordlicht has
been responsible for the oversight of all of our operations. Mr. Nordlicht
earned a BA degree from Yeshiva University in 1989."
-from OPBL's 10K
If anybody knows their way around securities regs, its probably these guys. Platinum is involved with numerous PIPE deals, and I believe is involved with CXTI.
Its actually amazing that with such heavy volume the stock isn't up higher than it is. My guess is that we're still seeing the overhang from some of this stock.
AI
